Do fence_bladecenter "reboot" the blade as a part of fencing always? I
have seen it turning the blade off by default.

fence daemon always tries to reboot a machine. In most of the cases it
is done by power off / check if it is really off / power on / check if
it is really on.

Fencing is successful if we were able to check that system is down.

Through fence_bladecenter --missing-as-off...... -o off returns me a
correct result when run from command line but fencing fails through
"fenced". I am using RHEL 5.5 ES and fence_bladecenter version reports
following -